Nashville-based LP posted 24 million dollars in earnings in the second quarter. That’s a dramatic change from 27 million in losses over the same period last year. The building products company says the federal home buyer’s tax credit triggered a building boom that drove the improvement.
Sales early in the quarter were strong enough to overcome a drop in the final five weeks. After the expiration of the credit in the middle of the quarter, the earnings boost tapered off.
CEO Rick Frost says the end of the building rush brought a “dead June”.
“In March and April we could hardly keep up with the consumer and the builder, in May the builder was finishing up, and they quit placing more orders, and in June the consumer and the builder basically shut down.”
Even with the drop at the end of the quarter, LP’s sales improved 67% overall from the same time last year.
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